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Hi guys,
Thanks for all that useful advice and information. I was a bit worried coz the deal I was getting into (my first one!) failed the 11 sec solution. However, after calculating and re-calculating, I finally got the correct bottom line. Yes, it is positive cashflow. Return of about 8-9% so it’s not bad. The property is Mackay CBD. It’s a 2 bedroom flat. Got it for 65K. 5% deposit and 60 days settlement. Weekly rental of 125. Current tenant to sign one year lease. Outgoings of about 1500 which would be 1000 council and 500 for body corp. The property management is a bit high though 8% plus gst plus $5.50 for postage and petties and letting fee for new tenants. It’s roundabout 12.48% of the weekly rental altogether. I figured, it’s okay as long as they do a good job.
I was a bit apprehensive posting my first deal as it might look so silly. But as Steve would put it, who cares if I look silly. [
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Yes, I did it. After weeks of no sleep and just searching and searching and searching. I did my first deal. Thanks to all of you and thanks to Steve and colleagues.
Cheers.
By the way, since the body corp already covers the building insurance, is it advisable to get insurance for contents as well. Say for example the tenant gets tripped by the carpet…I know, it sounds unreal but maybe it happens in the real world. As I say, this is my very first venture.Hi Guys,
Thanks for all your replies. Fingal is in Tassie. You got it right, Soosh! []
Becky, I have emailed the agent back to inquire exactly what he meant by that yesterday. Maybe emailing is not a good idea…hmm…I think I should ring him instead so he’d know I’m serious enough. Will do that after this post. Based on my calculations (11 sec solution), it’s not positive cashflow unless he lowers his selling price by about 10k. But I’ll still have a go. It will be good experience to talk to a seller.
Good idea about the clause, I did not think of that.[]
AlexaHi Becky,
Will check it out! Thanks.[]Hi Sooshie and AD,
I am constantly amazed at how many people are out there to help. [] Thank you to you guys.
Anyway, I got home that Sunday night EXHAUSTED! But my head just kept ticking. I could not get myself to rest. I went about reviewing my own set of goals and suddenly, I felt fear. I know, I know…fear in its definition is unreal but I felt it nevertheless. I did not think I would feel it. I thought I was mentally tough and that this is one of the challenges I can take on easily. But for 2 days now, I am just hanging on. From work, I come home, attend to my little bub and do something, maybe stay an hour or two browsing the net or just reading some property information. (I can’t get Steve’s challenge out of my head! one +ive property in 7 days!) One thing I am sure of, whatever the outcome of my search will be, I would come out a better person.
I am unsure if I can be of any help as far as providing advice in property investing BUT, if there is anything I can do to help, let me know. I would love to lend a hand.
Cheers.Hi Steve,
Thank you for inviting me to read the first draft of your intro. I think it is cleverly written. Light and certainly not imposing. It impresses upon the reader that there is a way out of being tied up to the office as an employee.
Having said that, I think I will have to agree with Brett in emphasising how you built your own wealth. But perhaps this is a chapter on its own. [] What about running through what the reader can expect in the book?
Kind Regards.
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